Top Five Dividend Companies in the Nairobi Securities Exchange

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Companies exist to create value for their investors. Value can be considered as the dividends that investors receive in proportion to the number of shares they own over the life of the company.

Dividends are highly related to net income and liquidity.

Most investors invest in dividend-paying stocks to take advantage of the stable income and reinvestment opportunities offered. However, it is important to have in mind that:-

  • Not all stock pay dividends.
  • Not all stock that pays dividends is worth owing.

If you are reading this, you are likely in a quest to know some of the top companies in Kenya that you can buy shares in and, in return, earn reasonable dividend payment. If your primary concern is the amount of dividends they pay, then roll over and learn.

Top Dividend-paying companies in Kenya according to NSE

British American Tobacco

The British American Tobacco Kenya is one of the highest paying dividends companies in the country. It yielded a dividend of 2.89% in the 2017-18 financial year. The market price per share was Sh 779.00. The final divided announced was Sh 30 final dividend in 2019 compared to shs 22.5 in 2020.

The British American Tobacco Kenya is a part of the British American Tobacco (BAT). It is among the world’s leading tobacco companies

Standard Chartered Bank

.The Standard Chartered Bank yielded a dividend of 5.48% on the 2017-2018 financial year. The price per share was Sh 228.00, and the final dividend announced was 12.50.

The standard chartered bank is a commercial Bank in Kenya offering financial and investment services.

Williamson Tea Kenya

  • Williamson Tea Kenya is also a top paying dividend company in Kenya. In the 2017-18 financial year, it yielded a 6.67% dividend. The market price for its share was Sh 150.00. It paid its shareholders a final dividend of Sh 10.00.

Williamson Tea is an agricultural based company in Kenya.

Nation Media Group

Nation Media Group is a top paying dividend company. In the last financial year, it yielded a 6.67% divided. Its market price for its share was going for Sh 111.00. The national media group announced the final dividend to pay its shareholders as 7.50.

Nation Media group is a group of Media Company with 18 brands in four countries. It is the most extensive media house in East and Central Africa in broadcast, print and digital media.

Kakuzi

Kakuzi is one of the highest paying companies in Kenya. In the last financial year, it yielded a 1.92% dividends. Its market price per share was going for Sh 365.00. Kakuzi announced a final dividend payment of 7.00.

Kakuzi is an agricultural cultivation and manufacturing company. Its products are tea, pineapples, avocado and livestock, among others. It also carries out forestry operations.

Takeaway on How to Choose Dividend Paying Companies in Kenya

The payment of a dividend is in relation to the amount of income earned by a company. Not all companies are worth investing in, but investing in top companies paying high dividends can add a load to your pocket.

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About Author

Anthony Kiratu is the Founder of Finsolutions. He is a financial analyst with over 5 years experience in research, investment advisory, valuation and financial modelling. Anthony is a member of the Institute of Certified Investment and Financial Analysts and Institute of Certified Public Accountants of Kenya. He is passionate about development of African Capital Markets through training of investors and dissemination of information for sound financial and investment decision making process. He is also a part-time lecturer in the Certified Investment and Financial Analyst course in the subjects of International Finance, Portfolio Management, Equity Investment Analysis, and Fixed Income Securities. Email: anthony@finsolutions.co.ke Contact: +254 780216631

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